The ROP approach works best for A category items (in ABC analysis) and for vital (VED) items where stock-outs can lead to serious losses in revenues or catastrophic consequences.

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The ROP (Reorder Point) approach is a widely used inventory management technique that helps determine when to place an order for replenishment of inventory. It works best for A category items in ABC analysis (items with high value and high demand) and for vital (VED) items where stockouts can lead to serious losses in revenues or catastrophic consequences. Therefore, the statement is true.

The ROP Approach Works Best for a Category Items (In